A Far Cry from Failure: The Two Main Reasons Why Companies Fail

“Success is a lousy teacher. It seduces us into thinking we cannot fail.” Bill Gates

There is one basic question, which many entrepreneurs often ask themselves after they succeed to develop effective product, and this question is: How to continue to innovate and explore new ideas (even new business models) and still manage to effectively run the company?

Read also: [The Importance of Pivoting in Entrepreneurship](http://www. startupist. com/2016/01/19/the-importance-of-pivoting-in-entrepreneurship/) Companies fail. We often say that failure is inevitable part of success, yet it is not a desired outcome after people put so much effort in their work.

Failure is useful only if you learn from it. There are lots of examples of companies, which fail to achieve growth and overcome the obstacles that the time and the changes in the business world offer them. These failures can be prevailed if the management and the leadership of the businesses manage to achieve the perfect balance between two important components of success: exploration and exploitation.

Even experienced CEOs fail to overcome the inevitable changes that come along the way of achieving growth and expanding the companies that they run. When this is the case for people, who have years of experience as managers and team leaders, what is it to expect when it comes to entrepreneurs with no or little experience.

“The real, real solution to quality growth is figuring out the balance between two activities: exploration and exploitation.” Knut Haanaes

During his TED Talk, business strategist Knut Haanaes talks about the importance of achieving balance between exploration and exploitation, the two main elements of company growth, and talks about the ways this balance can be reached. Watch the full talk in the video below and feel free to leave your comments in the comment section.